Private sector IDFC First Bank has announced major changes in the credit card payment rules. The bank said that it is making major changes in the minimum amount due and payment due date.
According to the website of IDFC First Bank, the changes in credit card payment will be applicable from September 2024.
Changes in MAD
The bank has revised the rates of minimum amount due. The new MAD rates have been reduced from 5 percent to 2 percent. Let us tell you that minimum amount due includes purchases, cash withdrawals and balance transfers. The new MAD rates will benefit customers in months when there are more unexpected or large costs.
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MAD is an amount that is paid back every month to maintain the credit card account in good standing, prevent late fees and overdues. It is calculated on the basis of EMI + interest + fees, other charges and taxes + amount over-utilized + 5% of the outstanding principal balance.
Change in payment due date
The bank has also changed the payment due date. The bank said that where earlier the statement used to be issued in 18 days, now it will be issued in 15 days. According to the bank’s website, the payment due date on credit card will be 15 days. From September 2024, the credit card payment statement will be issued within 15 days.
